What makes Bangalore’s Electronic City a good place to invest?
Electronic City in Bangalore, developed as the country’s leading IT centre, is home to over 200 IT/ITeS businesses such as Wipro, Infosys, and HCL, among others. As a result, the micro-market has expanded into a residential destination. Should you invest in Electronic City now that developers are building many home developments in the area?
The Karnataka State Electronics Development Corporation created the 330-acre Electronic City micro-market in South Bengaluru (KEONICS). It is a multi-phased mid-segment neighbourhood with good connectivity and a rich social and retail infrastructure. With various forthcoming initiatives including as road upgrades and easy access to the under-construction Bangalore-Chennai Expressway, the neighbourhood is expected to continue its prominent position in Bangalore’s real estate scene. Nevertheless, before you invest in Electronic City, there are a few things you should know.
A Quick Look at Real Estate
As Electronic City grew in popularity as a business centre, developers capitalised on its residential potential. As a result, multiple housing complexes have sprouted up in the neighbourhood during the previous decade. While professional jobs with offices in Electronic City seek to buy a home nearby, the abundance of properties has kept the purchase price stable with minor changes. According to statistics, apartments account for about 60% of Electronic City’s housing inventory, with over 90% consisting of 2 BHK and 3 BHK flats. Property prices have risen by over 7% in the previous five years, and are presently hovering at Rs 5,100 per square foot. Curiously, ventures such as Shriram Codename Dil Chahta Hai, Sipani Bliss, and Patel Smondoville, among others, have had an average YoY price increase of up to 30%. (Source: internal reports). In terms of rental yield, the area produced an annual Return on Investment (ROI) of roughly 7%. The presence of well-known builders such as Shriram Properties, Godrej Properties, and Ajmera Group, to mention a few, has increased investor interest in Electronic City.
Strong Connection
Within 15 kilometres, the area has easy road access to prominent South Bangalore neighbourhoods such as HSR Layout and Bommanahalli. Transport hubs such as the Electronic City Flyover, NH- 44, and Silk Board Flyover also greatly benefit the area. The state government has also made concerted attempts to improve connection by operating electric buses from Electronic City to International Tech Park (32 kilometres) and Kempegowda International Airport (50 km). The Peripheral Ring Road project’s developments on the main Hosur Road, such as six foot-over-bridges to largely reach the region and a cloverleaf interchange, are also planned to alleviate traffic congestion. The construction of neighbouring metro stations such as Beratena Agrahara, Infosys Foundation Konappana Agrahara, and Huskur Road, as well as a dedicated metro station on the RV Road-Bommasandra Phase of the Namma Metro’s Yellow Line, are also expected to boost real estate demand in the region.
Infrastructure For Social And Retail Activities
In addition to low purchase prices and reliable connection, Electronic City is close to several schools, universities, and hospitals. Sorsfort International School (2.5 km), Treamis Global School (3 km), PES Institute of Technology (2.5 km), and Vimalalaya Hospital (5 km), among others, are located in the region. To mention a few leisure and shopping options, the area includes Bannerghatta National Park, Hebbagodi Lake Park, and Gopalan Innovation Mall. Electronic City also offers marketplaces such as Sunshine Super Market and Reliance Fresh to provide residents’ everyday shopping needs.
Electronic City’s micro-market has a self-sustaining ecosystem that makes life easier. Residents, however, have also complained about “improper rubbish dumping,” “stormwater flooding,” and “bad water quality,” as documented in internal files and on the Ratings site. As a result, conducting proper market research and scheduling site inspections prior to signing the contract is critical.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
